Kaohoon Morning Brief – 17 June 2022

1) KTBST expects SET Index to trade lower without positive drivers

KTBST Securities saw a negative outlook in the Thai stock market, saying that there are no new positive factors to drive the market and it could be around 2-3 days for investors to price in the Fed’s aggressive rate hike. Major stocks that foreign investors were focusing on as of late such as PTTEP, KBANK, ADVANC and PTT could weigh the market down as investors price in the rate hike as well as the baht depreciation.

The analyst stated that the Center for COVID-19 Situation Administration (CCSA) will meet today to consider lowering Covid-19 restrictions and could introduce a tourism package to boost the industry. The analyst noted that this could be a positive sentiment to tourism stocks such as AOT and CENTEL.


2) BoE nods to a 25bp rate hike to 1.25%

The Bank of England on Thursday agreed to implement its fifth consecutive interest rate hike in order to tame surging inflation in the kingdom.

The Monetary Policy Committee voted 6-3 to increase the policy rate by 25 basis points to 1.25% with three hawkish members voting for the bank to raise the rate by 50bp to 1.50%.

The central bank said in a statement with the same tone as the U.S. Federal Reserve that it will take the actions necessary to return inflation to the 2% target sustainably in the medium term. The scale and pace of future hikes will depend on the economic outlook and inflationary pressures.


3) Bitcoin trades at 2020 lows as risk assets sell off continues

Bitcoin is trading near $20,000 level as a sell-off in global risk assets continued on Thursday. The largest trading cryptocurrency dropped as much as 3% yesterday, but made a slight rebound on Friday morning at $20,613 to one bitcoin. 

Bitcoin is trading at levels not seen since late 2020. The coin plunged nearly 50% in three months and 55% since the beginning of this year.